Sony Worldwide Studios head Shuhei Yoshida has said that the Team ICO game The Last Guardian is still being worked on, however its moving along at a slow pace.
“The project has been making progress, but slow progress. So that’s tough, but we haven’t changed any focus. It’s still a really important project and a vision we want to see realized, and Fumito’s vision is really causing a very difficult challenge for the developers, so there’s some scrapping and rebuilding — iteration in the process. That’s why [it's taking so long].”
Speaking at Cologne’s Gamescom event in August, Yoshida said that the game was “still making progress” and saying that Sony would still “continue to support” it.
Yoshida also commented on Ueda leaving the project full time, stating that it was actually a way for him to do more creative work on the project, and that he still comes in and works the hardest on the game.
“Well it’s confirmed in terms of the status of his relation to the company — he was an employee, and now he’s working on a contract basis,’ said Yoshida.
“You know, we discussed an arrangement so he could focus on the creative side. But his work and his presence on that team never changed, so it was just more a contractual rearrangement, and that was taken as ‘he left’.”
“He comes in every day, and he’s probably one of the people who works the longest hours.”
It seems that The Last Guardian is still alive, which was many peoples worry, however we probably wont be seeing much of it (again) in 2012.